2018-10-23T07:03:13-05:00 2017-12-31 561434747 GREERWALKER LLP 227 WEST TRADE ST SUITE 1100 CHARLOTTE NC 28202 990 2017-01-01 203311003 SERC RELIABILITY CORPORATION SERC 7043577372 3701 ARCO CORPORATE DRIVE NO 300 CHARLOTTE NC 28273 GARY TAYLOR PRESIDENT & CEO 7043577372 2018-10-17 1 PAULA P TILLEY P00051456 7043770239 2018-10-17 74.84.220.244 2018-10-17 16:18:26 ED P 9576A578BD80599639D4CAFCE08A8E018C5E718A 1F780F18B0586542B874D8CCCC604A252ACB6B3F 2017 2018-06-14 16:35:46Z GARY TAYLOR 3701 ARCO CORPORATE DRIVE NO 300 CHARLOTTE NC 28273 16167131 0 X WWW.SERC1.ORG X 2005 NC THE MISSION OF THE SERC RELIABILITY CORPORATION (SERC) IS TO ASSURE EFFECTIVE AND EFFICIENT REDUCTION OF RISKS TO THE RELIABILITY AND SECURITY OF THE BULK POWER SYSTEM. SERC PROVIDES STATUTORY FUNCTIONS CALLED FOR IN SECTION 215 OF THE FEDERAL POWER ACT, IN ACCORDANCE WITH ITS DELEGATION AGREEMENT BETWEEN SERC AND THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC). SERC PROVIDES THE FOLLOWING FUNCTIONS: ANALYZE EVENTS TO IDENTIFY LESSONS LEARNED THAT WILL IMPROVE RELIABILITY; PROMOTE BPS RELIABILITY, ADEQUACY AND SECURITY; HELP DEVELOP RELIABILITY STANDARDS FOR THE NORTH AMERICAN BULK POWER SYSTEM (BPS) AND THE SERC REGION; MONITOR AND ENFORCE APPROVED MANDATORY RELIABILITY STANDARDS; REGISTER AND CERTIFY RESPONSIBLE ENTITIES UNDER THE RELIABILITY COMPLIANCE PROGRAM; ASSESS THE BPS PAST, PRESENT, AND FUTURE RISK PROFILE IN ORDER TO ASSURE RELIABILITY, ADEQUACY, AND SECURITY; AND TRAIN OPERATING PERSONNEL TO ASSURE COMPETENCE. 44 44 75 1015 0 0 0 0 13932121 16161762 4376 5369 1129569 0 15066066 16167131 0 0 0 0 12508815 11867389 0 0 0 4333276 4838244 16842091 16705633 -1776025 -538502 6745411 6622094 4044391 4459576 2701020 2162518 X THE MISSION OF THE SERC RELIABILITY CORPORATION (SERC) IS TO ASSURE EFFECTIVE AND EFFICIENT REDUCTION OF RISKS TO THE RELIABILITY AND SECURITY OF THE BULK POWER SYSTEM. SERC PROVIDES STATUTORY FUNCTIONS CALLED FOR IN SECTION 215 OF THE FEDERAL POWER ACT, IN ACCORDANCE WITH ITS DELEGATION AGREEMENT BETWEEN SERC AND THE NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC). SERC PROVIDES THE FOLLOWING FUNCTIONS: ANALYZE EVENTS TO IDENTIFY LESSONS LEARNED THAT WILL IMPROVE RELIABILITY; PROMOTE BPS RELIABILITY, ADEQUACY AND SECURITY; HELP DEVELOP RELIABILITY STANDARDS FOR THE NORTH AMERICAN BULK POWER SYSTEM (BPS) AND THE SERC REGION; MONITOR AND ENFORCE APPROVED MANDATORY RELIABILITY STANDARDS; REGISTER AND CERTIFY RESPONSIBLE ENTITIES UNDER THE RELIABILITY COMPLIANCE PROGRAM; ASSESS THE BPS PAST, PRESENT, AND FUTURE RISK PROFILE IN ORDER TO ASSURE RELIABILITY, ADEQUACY, AND SECURITY; AND TRAIN OPERATING PERSONNEL TO ASSURE COMPETENCE. 0 0 THE COMPLIANCE MONITORING AND ENFORCEMENT PROGRAM (CMEP) IS THE LARGEST PROGRAM AREA AT SERC, AND IS IMPLEMENTED PURSUANT TO SERC'S DELEGATION AGREEMENT AND THE NERC UNIFORM CMEP DEVELOPED UNDER SECTION 215(C) OF THE FEDERAL POWER ACT AND APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION. THE SERC CMEP IS IMPLEMENTED BY PERSONNEL THAT ARE INDEPENDENT OF STAKEHOLDERS AND REGISTERED ENTITIES. THE SERC CMEP IS FURTHER DIVIDED INTO FIVE AREAS: COMPLIANCE MONITORING; COMPLIANCE PROGRAMS AND SERVICES; ENTITY ASSESSMENT AND MITIGATION; ORGANIZATION REGISTRATION AND CERTIFICATION; AND ENFORCEMENT.1.) THE COMPLIANCE MONITORING AREA IS RESPONSIBLE FOR CONDUCTING COMPLIANCE AUDITS, SPOT CHECKS, AND COMPLIANCE INVESTIGATIONS; FOR SERVING AS SUBJECT MATTER EXPERTS FOR ALL STANDARDS; AND FOR IMPLEMENTING THE PROCESS FOR TECHNICAL FEASIBILITY EXCEPTIONS (TFE) TO THE NERC CRITICAL INFRASTRUCTURE PROTECTION (CIP) RELIABILITY STANDARDS.2.) THE COMPLIANCE PROGRAMS AND SERVICES AREA IS RESPONSIBLE FOR IMPLEMENTING AND DEPLOYING CMEP-RELATED ANALYTICS AND COMPLIANCE ASSESSMENTS.3.) THE ENTITY ASSESSMENT AND MITIGATION AREA IS RESPONSIBLE FOR IMPLEMENTING AND DEPLOYING ENTITY INHERENT RISK ASSESSMENTS (IRA) AND INTERNAL CONTROLS EVALUATIONS (ICE); FOR SERVING AS THE SINGLE POINT OF CONTACT FOR ALL NON-COMPLIANCE ISSUES DISCOVERED AND/OR SELF-REPORTED TO THE REGION; FOR DETERMINING THE COMPLETE SCOPE OF VIOLATIONS; FOR DETERMINING THE ACTUAL AND POTENTIAL RISK POSED BY VIOLATIONS TO BPS RELIABILITY; AND FOR REVIEWING REGISTERED ENTITY MITIGATING ACTIVITIES TO ENSURE THAT ENTITIES CORRECT ISSUES AND PREVENT RECURRENCE THROUGH APPROPRIATE MITIGATION.4.) THE ORGANIZATION REGISTRATION AND CERTIFICATION AREA IS RESPONSIBLE FOR REGISTERING OWNERS, OPERATORS, AND USERS OF THE BPS REQUIRED TO COMPLY WITH NERC RELIABILITY STANDARDS; AND FOR CERTIFYING APPLICABLE ENTITIES WHO PERFORM RELIABILITY-RELATED FUNCTIONS.5.) THE ENFORCEMENT AREA EVALUATES ALL POSSIBLE VIOLATIONS OF RELIABILITY STANDARDS BY SERC REGISTERED ENTITIES AND CONDUCTS A THOROUGH ASSESSMENT TO DETERMINE IF A VIOLATION ACTUALLY OCCURRED. THE ENFORCEMENT STAFF NOTIFIES THE REGISTERED ENTITY OF ITS FINDINGS REGARDING THE VIOLATION AND ANY APPLICABLE PENALTIES OR SANCTIONS. THE ENFORCEMENT STAFF MAY ALSO ENGAGE IN SETTLEMENT NEGOTIATIONS WITH THE REGISTERED ENTITY. THE PROPOSED ENFORCEMENT ACTION, ALONG WITH ANY PROPOSED PENALTY OR SANCTIONS, IS SUBMITTED TO NERC FOR ITS REVIEW AND APPROVAL, AND SUBSEQUENT SUBMITTAL TO FERC. IF A REGISTERED ENTITY CHALLENGES THE FINDINGS OF THE VIOLATION AND/OR PENALTY, THE ENFORCEMENT STAFF PROSECUTES THE CASE BEFORE THE SERC BOARD COMPLIANCE COMMITTEE, WHICH ACTS AS SERC'S HEARING BODY. THE SECOND LARGEST PROGRAM AT SERC IS THE RELIABILITY ASSESSMENTS AND PERFORMANCE ANALYSIS (RAPA) PROGRAM. SERC'S RAPA PROGRAM PROVIDES ANALYSIS, DATA GATHERING, AND ANALYSIS OF EVENTS ON THE BPS. THE RAPA FUNCTION IDENTIFIES RELIABILITY RISKS TO THE BPS IN THE SERC FOOTPRINT FOR THE PURPOSE OF INTEGRATED RISK ANALYSIS. RAPA'S MISSION IS TO PROMOTE A CULTURE OF RELIABILITY EXCELLENCE AMONG THE OWNERS OF BPS ASSETS. THE PROGRAM ACCOMPLISHES THIS MISSION BY IDENTIFYING RISKS TO RELIABILITY, ANALYZING PERFORMANCE AND PRIORITIZING SIGNIFICANT RISKS.SERC CONDUCTS AN INDEPENDENT RELIABILITY ASSESSMENT OF THE BPS WITHIN THE SERC REGION, INCLUDING DATA GATHERING AND ANALYSIS. THE ASSESSMENT PROGRAM USES INFORMATION FROM ITS INTERNAL DATA COLLECTION SOURCES ALONG WITH OTHER PROGRAMS, SUCH AS NERC TRANSMISSION AVAILABILITY DATA SYSTEM (TADS), GENERATING AVAILABILITY DATA SYSTEMS (GADS), AND DEMAND RESPONSE AVAILABILITY DATA SYSTEM (DADS). SERC EVALUATES THE OVERALL RELIABILITY, PERFORMANCE, AND ADEQUACY OF THE SERC REGION AND REPORTS ITS RESULTS TO NERC. SERC'S WORK SUPPORTS NERC'S OBLIGATION TO PERFORM SIMILAR ANALYSIS OF THE INTERCONNECTED NORTH AMERICAN BPS. THE THIRD LARGEST PROGRAM IS TRAINING, EDUCATION, AND OPERATOR CERTIFICATION. THE SERC TRAINING, EDUCATION, AND OPERATOR CERTIFICATION PROGRAM PROVIDES EDUCATION AND TRAINING NECESSARY TO OBTAIN ESSENTIAL KNOWLEDGE ON THE OPERATIONS OF THE BPS. SERC TRAINING AND EDUCATION PROGRAMS SUPPORT THE CONTINUING EDUCATION CERTIFIED SYSTEM OPERATORS IN THE SERC REGION. THE PROGRAM'S TARGET AUDIENCE IS BPS OPERATING PERSONNEL, SYSTEM OPERATORS, OPERATIONS SUPPORT PERSONNEL, AND TRAINING PERSONNEL. SERC SUPPORTS THE DEVELOPMENT OF SERC'S STAFF TRAINING AND EDUCATION IN POWER SYSTEM OPERATING TOPICS.SERC ALSO PROVIDES EDUCATION TO REGISTERED ENTITIES THROUGH ROBUST OUTREACH ENGAGEMENTS, FOCUSING PRIMARILY ON COMPLIANCE ACTIVITIES, INTERNAL CONTROLS, AND EMERGING RELIABILITY ISSUES. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 32 0 1 75 1 0 0 0 0 0 0 X 44 44 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 NC X GEORGE KROGSTIE 7043577372 3701 ARCO CORPORATE DRIVE STE 300 CHARLOTTE NC 28273 GREG FORD - GEORGIA SYSTEM OPERATIO CHAIR 0.30 X X 0 0 0 TODD HILLMAN - MIDCONTINENT INDEPEN VICE-CHAIR 0.30 X X 0 0 0 PANDELIS XANTHAKOS - SOUTH CAROLINA SECRETARY-TREASURER 0.30 X X 0 0 0 BEN ENGELBY - ACES DIRECTOR 0.30 X 0 0 0 MARK ENNIS - ALABAMA MUNICIPAL ELEC DIRECTOR 0.30 X 0 0 0 KATHERINE PREWITT - SOUTHERN COMPAN DIRECTOR 0.30 X 0 0 0 MATTHEW FULLERTON - ALCOA POWER GEN DIRECTOR 0.30 X 0 0 0 DENNIS KRAMER - AMEREN SERVICES COM DIRECTOR 0.30 X 0 0 0 ROGER CLARK - ASSOCIATED ELECTRIC C DIRECTOR 0.30 X 0 0 0 MIKE CHAMBLISS - BIG RIVERS ELECTRI DIRECTOR 0.30 X 0 0 0 STEVE ECKERT - BROOKFIELD RENEWABLE DIRECTOR 0.30 X 0 0 0 BRETT KRUSE - CALPINE ENERGY SERVIC DIRECTOR 0.30 X 0 0 0 TAD JOHNSEN - CITY OF COLUMBIA MO DIRECTOR 0.30 X 0 0 0 JOHN DAVIS - CITY OF SPRINGFIELD IL DIRECTOR 0.30 X 0 0 0 NATHAN L BROWN - COOPERATIVE ENERGY DIRECTOR 0.30 X 0 0 0 NELSON PEELER - DUKE ENERGY CAROLIN DIRECTOR 0.30 X 0 0 0 DAN ROETHEMEYER - DYNEGY INC DIRECTOR 0.30 X 0 0 0 DENVER YORK - EAST KENTUCKY POWER C DIRECTOR 0.30 X 0 0 0 ROY JONES - ELECTRICITIES OF NORTH DIRECTOR 0.30 X 0 0 0 JIM SCHOTT - ENTERGY DIRECTOR 0.30 X 0 0 0 DAVID TREGO - FAYETTEVILLE PUBLIC W DIRECTOR 0.30 X 0 0 0 SILVIA PARADA MITCHELL - FLORIDA PO DIRECTOR 0.30 X 0 0 0 JERRY DONOVAN - GEORGIA TRANSMISSIO DIRECTOR 0.30 X 0 0 0 KEVIN GADEN - ILLINOIS MUNICIPAL EL DIRECTOR 0.30 X 0 0 0 TOM JESSEE - LGE AND KU SERVICES CO DIRECTOR 0.30 X 0 0 0 DAN JEWELL - LOUISIANA GENERATING L DIRECTOR 0.30 X 0 0 0 ALONZO WEAVER - MEMPHIS LIGHT GAS A DIRECTOR 0.30 X 0 0 0 DOUG LEGO - MUNICIPAL ELECTRIC AUTH DIRECTOR 0.30 X 0 0 0 KENT COCHRAN - NASHVILLE ELECTRIC S DIRECTOR 0.30 X 0 0 0 LUIS FONDACCI - NORTH CAROLINA ELEC DIRECTOR 0.30 X 0 0 0 VENONA GREAFF - OCCIDENTAL CHEMICAL DIRECTOR 0.30 X 0 0 0 MICHAEL SMITH - OGLETHORPE POWER CO DIRECTOR 0.30 X 0 0 0 MARK RINGHAUSEN - OLD DOMINION ELEC DIRECTOR 0.30 X 0 0 0 TIM LYONS - OWENSBORO KY MUNICIPAL DIRECTOR 0.30 X 0 0 0 LAWRENCE HOPKINS JR - PIEDMONT ELEC DIRECTOR 0.30 X 0 0 0 STANLEY H WILLIAMS - PJM INTERCONNE DIRECTOR 0.30 X 0 0 0 JAY FARRINGTON - POWERSOUTH ENERGY DIRECTOR 0.30 X 0 0 0 DICK CHAPMAN - PRAIRIE POWER INC DIRECTOR 0.30 X 0 0 0 SHAWN T TOM ABRAMS - SOUTH CAROLIN DIRECTOR 0.30 X 0 0 0 KENNETH LEGG - SOUTHEASTERN POWER A DIRECTOR 0.30 X 0 0 0 WILLIAM HUTCHISON - SOUTHERN ILLINO DIRECTOR 0.30 X 0 0 0 BRAD COX - TENASKA POWER SERVICES C DIRECTOR 0.30 X 0 0 0 MARK SMITH - TENNESSEE VALLEY AUTHO DIRECTOR 0.30 X 0 0 0 LOU OBERSKI - VIRGINIA ELECTRIC AND DIRECTOR 0.30 X 0 0 0 GARY TAYLOR PRESIDENT/CEO 40.00 X 585386 0 51939 TIMOTHY PONSETI VICE PRESIDENT - OPERATIONS 40.00 X 148583 0 19221 AUGUST MCCLAINE CORPORATE SECRETARY 40.00 X 181479 0 22695 GEORGE KROGSTIE DIRECTOR - FINANCE 40.00 X 94318 0 18746 HOLLY HAWKINS GENERAL COUNSEL 40.00 X 266750 0 27454 NAPOLEON JOHNSON SENIOR DIRECTOR - PROGRAM SERVICES 40.00 X 272328 0 41047 BRIAN THUMM SENIOR DIRECTOR - COMPLIANCE & RELIABILITY 40.00 X 253000 0 38402 ERIN KWON DIRECTOR - HUMAN RESOURCES 40.00 X 221125 0 27665 WALTER CURL SENIOR MANAGER - COMPLIANCE MONITORING 40.00 X 190789 0 32122 EDWARD FRANKS MANAGER - TECHNICAL SERVICES 40.00 X 187740 0 28825 ROBERT SCOTT HENRY FORMER PRESIDENT/CEO 0.00 X 227326 0 0 2628824 0 308116 45 1 1 0 ENERGY CLOUD SERVICES 108 S MAIN ST SALISBURY NC 28144 IT CONTRACTORS 646328 WALSER TECHNOLOGY GROUP 108 S MAIN ST SALISBURY NC 28144 IT CONTRACTORS 387187 GUIDANCESOLUTIONS 4134 DEL REY AVE MARINA DEL REY CA 90292 IT CONTRACTORS 335560 ASCENDO RESOURCES 500 WEST CYPRESS CREEK ROAD SUITE FORT LAUDERDALE FL 33309 FINANCE CONTRACTORS 188600 RUSSELL REYNOLDS ASSOCIATES INC CHURCH STREET STATION PO BOX 6427 NEW YORK NY 102496427 CANDIDATE SEARCH PROFESSIONAL SERVICES 124243 6 MEMBER ASSESSMENT 900099 15706023 15706023 PENALTY SANCTIONS 900099 195000 195000 CONTRACTS 900099 138641 138641 WORKSHOP REVENUE 900099 122098 122098 16161762 5369 5369 16167131 16161762 0 5369 X 1122367 8184193 1162438 798070 600321 45249 22073 1043942 403942 1378227 633197 422033 360581 356415 47540 125045 16705633 3167272 2599215 2416799 2808372 142868 22477 305394 84762 2411715 1608919 713078 802796 0 304472 6745411 6622094 2887448 3169556 684268 811784 472675 478236 4044391 4459576 X 2701020 2162518 2701020 2162518 6745411 6622094 -538502 0 X X 0 1 X 1 0 423140 102550 320590 577820 255038 322782 1410755 1251331 159424 802796 DEFERRED RENT 478236 478236 X 16167131 0 16167131 0 16167131 16705633 0 16705633 0 16705633 PART X, LINE 2: THE CORPORATION RECORDS LIABILITIES FOR INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN WHEN THOSE POSITIONS ARE DEEMED UNCERTAIN TO BE UPHELD IN AN EXAMINATION BY TAXING AUTHORITIES. NO LIABILITIES FOR UNCERTAIN INCOME TAX POSITIONS WERE RECORDED AS OF DECEMBER 31, 2017 AND 2016. PART VI, LINE 1E: SOFTWARE MAKES UP THE AMOUNT IN THE "OTHER" FIXED ASSET CLASS. X X X X X 1 1 0 GARY TAYLOR PRESIDENT/CEO 362506 0 222880 0 0 0 48669 0 3270 0 637325 0 0 0 TIMOTHY PONSETI VICE PRESIDENT - OPERATIONS 120250 0 28333 0 0 0 10602 0 8619 0 167804 0 0 0 AUGUST MCCLAINE CORPORATE SECRETARY 145000 0 36479 0 0 0 14146 0 8549 0 204174 0 0 0 HOLLY HAWKINS GENERAL COUNSEL 220000 0 46750 0 0 0 23678 0 3776 0 294204 0 0 0 NAPOLEON JOHNSON SENIOR DIRECTOR - PROGRAM SERVICES 214578 0 57750 0 0 0 24300 0 16747 0 313375 0 0 0 BRIAN THUMM SENIOR DIRECTOR - COMPLIANCE & RELIA 205500 0 47500 0 0 0 22770 0 15632 0 291402 0 0 0 ERIN KWON DIRECTOR - HUMAN RESOURCES 160125 0 61000 0 0 0 18941 0 8724 0 248790 0 0 0 WALTER CURL SENIOR MANAGER - COMPLIANCE MONITORI 155642 0 35147 0 0 0 15263 0 16859 0 222911 0 0 0 EDWARD FRANKS MANAGER - TECHNICAL SERVICES 158290 0 29450 0 0 0 15129 0 13696 0 216565 0 0 0 ROBERT SCOTT HENRY FORMER PRESIDENT/CEO 0 0 0 0 227326 0 0 0 0 0 227326 0 0 0 PART I, LINES 4A-B IN TAX YEAR 2017 FORMER PRESIDENT/CEO ROBERT SCOTT HENRY RECEIVED SEVERANCE PAYMENT OF $227,326. HIS EMPLOYMENT WITH SERC RELIABILITY CORPORATION ENDED ON 06/08/2016. FORM 990, PART VI, SECTION A, LINE 6 SERC RELIABILITY CORPORATION IS AN ORGANIZATION WITH MEMBERS WHO DESIGNATE THE REPRESENTATIVE TO THE GOVERNING BODY, WHICH ITSELF OR THROUGH THE EXECUTIVE COMMITTEE MAKES SIGNIFICANT DECISIONS FOR THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A EACH BOARD MEMBER HAS A WEIGHTED VOTE IN ELECTING MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE GOVERNING BODY IS MADE UP OF OUR MEMBERS. ONCE THE BOARD APPROVES, IT DOES NOT NEED ADDITIONAL APPROVAL BY THE MEMBERS. FORM 990, PART VI, SECTION B, LINE 11B A COMPLETE COPY OF THE 990 IS PROVIDED TO THE BOARD OFFICERS. A REDACTED COPY IS PROVIDED TO THE REMAINING BOARD MEMBERS BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C SERC HAS A WRITTEN CONFLICT OF INTEREST POLICY, IN WHICH ALL EMPLOYEES AND BOARD MEMBERS ARE REQUIRED TO REVIEW AND COMPLETE A WRITTEN QUESTIONNAIRE ON CONFLICTS ON AN ANNUAL BASIS. ALL SERC STAFF CONFLICTS ARE CONSOLIDATED ON A "SERC STAFF RECUSAL REQUIREMENTS" DOCUMENT. EACH SERC REPRESENTATIVE MUST RECUSE HIMSELF OR HERSELF FROM PARTICIPATION IN ANY PARTICULAR MATTER INVOLVING THE SUBJECT OF A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE OFFICERS OF THE INDEPENDENT BOARD MEET IN EXECUTIVE SESSION TO REVIEW AND APPROVE THE SALARY AND INCENTIVE PAY FOR THE OFFICERS OF THE ORGANIZATION. THE BOARD OFFICERS RELY UPON INDUSTRY DATA AND COMPENSATION STUDIES PERFORMED TO DETERMINE THE REASONABLENESS OF THE EXECUTIVES' COMPENSATION PACKAGES. COMPENSATION STUDIES ARE PERFORMED AT A MINIMUM EVERY OTHER YEAR AND INCLUDE SOURCES SUCH AS TOWERS WATSON AND OTHER SOURCES AND REGIONAL REPORTS RECEIVED FOR THE ORGANIZATION'S PARTICIPATION IN REGIONAL COMPENSATION SURVEYS. THE DELIBERATION AND DECISION IS CONTEMPORANEOUSLY SUBSTANTIATED IN MEETING MINUTES. THE BOARD-APPOINTED HUMAN RESOURCE AND COMPENSATION COMMITTEE REVIEWS AND ENDORSES THE PRESIDENT'S RECOMMENDATIONS REGARDING THE COMPENSATION OF KEY EMPLOYEES AND OTHER HIGHEST PAID EMPLOYEES. THE COMMITTEE RELIES UPON INDUSTRY DATA AND COMPENSATION STUDIES PERFORMED TO DETERMINE REASONABLENESS OF THE COMPENSATION OF HIGHEST PAID EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 ALL GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G CONSULTING 199,322. CONTRACT LABOR 352,600. OTHER THIRD PARTY CONTRACTED SERVCIES 338,103. OTHER PROFESSIONAL FEES 153,917. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.